According to Blockstream CEO Adam Back, MicroStrategy (MSTR) shares reaching $194 would correspond to about $80,000 per Bitcoin.
Cantor Fitzgerald, an American financial services giant that was founded all the way back in 1945, recently initiated coverage on the stock of the biggest corporate holder of Bitcoin. The firm announced the above-mentioned price target of $194.
The $80,000 Bitcoin target seems to be reasonable if the CMSTR:BTC price ratio remains within the existing model, according to Back.
Earlier this year, STOKR, the European marketplace that allows issuing tokenized digital shares, announced CMSTR Notes, with each of them representing 100 shares in the company. The introduction of CMSTR made it possible to trade the MicroStrategy stock directly against the flagship cryptocurrency on Liquid, Blockstream’s Bitcoin sidechain.
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The shares of MicroStrategy are currently trading at $137.52 a pop, up nearly 3% during the current trading session. The company’s stock has reacted to Bitcoin’s renewed bullishness. The price of the leading cryptocurrency spiked sharply higher after the U.S. Federal Reserve effectively confirmed an upcoming rate cut by announcing a “policy adjustment” during his speech in Jackson Hole, Wyoming.
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The stock would need to increase by roughly 42% in order to reach the price target suggested by Cantor Fitzgerald.
The MicroStrategy stock peaked at $191 in March, which naturally coincided with Bitcoin’s current price peak.
In July, the company announced the implementation of a 10-for-1 stock split.
